Lesaka reports R2.6bn revenue post Adumo acquisition

The JSE- and Nasdaq-listed South African fintech group says this is at the mid-point of the firm’s revenue guidance, and compares to R2.5 billion in Q1 2024.

It posted an operating loss of R0.3 million, in comparison to operating income of R4.2 million in Q1 2024.

It notes the current quarter includes R30 million one-off transaction costs relating to the acquisition of Adumo. Excluding the impact of these transaction costs, operating income would have been R29.7 million, says the company.

The net loss, including the Adumo transaction costs, improved 23% in ZAR, to a net loss of R81 million in Q1 2025. 

In April, Lesaka signed a definitive agreement to acquire payments services provider Adumo in a R1.59 billion ($85.9 million) deal.

After giving effect to the acquisition, Lesaka’s ecosystem now serves 1.7 million active consumers, 119 000 merchants and processes over R250 billion in throughput (R40 billion card, R100 billion value-added services and R110 billion cash) per year.

Says Lesaka chairman Ali Mazanderani: “We continue to invest in building the Lesaka platform and to scale as Southern Africa’s leading independent fintech. We achieved the mid-point of our revenue and group adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance for Q1 2025. 

“We have now delivered on our group adjusted EBITDA guidance for nine successive quarters and reaffirm our FY 2025 group adjusted EBITDA guidance of R900 million to R1 billion. Our group adjusted EBITDA guidance for FY 2025 implies 37% growth, year-on-year, at the midpoint of the range.”

The company adds that generally accepted accounting principles (GAAP) loss per share improved 24% to R1.26 from R1.66 in Q1 2024.

“Group adjusted EBITDA (a non-GAAP measure) of R168.1 million was at the mid-point of our guidance range, improving 12% in ZAR from R149.5 million in Q1 2024,” it states.

Fundamental earnings per share (a non-GAAP measure) of R0.66 was an improvement of R0.74 compared to a fundamental loss per share of R0.08 in Q1 2024.

According to Lesaka, the consumer division revenue increased 30% in R378.1 million and segment adjusted EBITDA increased 99% to R78.7 million.

It says the merchant division realised revenue of R2.3 billion, which remained flat in ZAR, and segment adjusted EBITDA contracted marginally, by 1% in ZAR, to R142.1 million.